Netflix upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research upgraded Netflix (NFLX) to Outperform from Peer Perform with a $1,100 price target following the Q4 earnings report. The company’s “superior scale” led to accelerating financial returns and expanding potential to capture the long-term total addressable market, the analyst tells investors in a research note. The firm says Netflix’s results and 2025 guidance “buried” its long-standing concerns about a deep slowdown after the 2023-2024 “barrage of password sharing interventions.” The company’s widening growth strategies, superior scale, and “rich” cash flow position it to extend its lead in long-form video streaming, which continues to take wallet share from pay TV, a $130B revenue category in the U.S. alone, contends Wolfe. The firm thinks “it could be a very, very long time before Netflix reaches a terminal growth rate.”